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Payable to Gold Bullion Holdings Jersey Limited GBH

12 Months Ended

Dec. 31, 2023

Payable to Gold Bullion Holdings Jersey Limited GBH [Abstract]

Payable to Gold Bullion Holdings Jersey Limited GBH

12. Payable to Gold Bullion Holdings (Jersey) Limited (“GBH”)

On November 20, 2023, the Company repurchased its Series C Preferred Stock which was convertible into 13,087,000 shares of the Company’s common stock, from GBH, a subsidiary of WGC, for aggregate cash consideration of approximately $84,411. Under the terms of the transaction, the Company paid GBH $40,000 on the closing date, with the remainder of the purchase price payable in equal, interest-free installments on the first, second and third anniversaries of the closing date. The implied price per share was $6.02 when considering the interest-free financing element of the transaction. The investor rights agreement that the Company and GBH entered into in May 2023 in connection with the issuance of the Series C Preferred Stock, which provided GBH with certain rights and obligations with respect to the shares, including registration rights, was terminated in this transaction.

Under U.S. GAAP, the obligation was recorded at its present value utilizing a market rate of interest on the closing date of 7.0% and the corresponding discount is being amortized as interest expense pursuant to the effective interest method of accounting over the life of the obligation. The aggregate consideration payable was valued at $38,835 on the closing date and the carrying value of this obligation is as follows:

	December 31, 2023
Current:	$	14,804
Long-term		24,328
Total	$	39,132

Interest expense recognized during the year ended December 31, 2023 was $297 and is included as a component of total interest expense recognized on the Statements of Operations.